Ladies and gentlemen, today we present a solid and reliable project on which it is worth investing the time to understand its potential. Once it is clear what it is, how it works and what it can yield, then, and only then you should decide how much money to invest.
This project is called 1Inch, and groups together several decentralized exchanges. The protocol includes the following DEXs: Oasi, Kyber Network, Uniswap, Mooniswap and Balancer among the best known.
This multitude of DEX, gives the possibility to exchange the majority of Tokens originating on the ethereum Blockchain (ERC-20); in fact, 283 coins and 296 trading pairs are supported.
Not bad, I told you it is a well structured project!
Also through a proprietary AMM (Automated Market Marker) it is possible to obtain liquidity by making use of the profits resulting from arbitrage.
The fundamental element of the protocol is decentralization, in fact all operations are performed by connecting your wallet to the platform: in this way your funds do not move from your "pockets" and makes life difficult, if not impossible for hackers!
This image removes many doubts.
A bit of history.
Although this platform is very young, following multiple audits it has conquered the DeFi landscape.
Born at the behest of Anton Bukov and Sergej Kunz, the project saw the light in May 2019 on the occasion of the ETH hackathon in New York.
Over the course of 2020, decentralized exchanges experienced exponential growth and 1Inch proved to be the No. 1 aggregator.
Initially 1Inch was a project led only by its co-founders, then they added a team of developers: Petr Korolev, Mikhail Melnik and “Kirill”.
In May 2020, the "Chi" token, which is a "gas token", is launched.
Gas tokens are used to tokenize gas; in this way you can buy gas when the price is low, storing it in the “Chi” tokens, and then use them when needed.
An operation similar to that of Binance, which if the fees are paid with Binance Coins, there is a discount; only in this case there is no discount, but you can take advantage of the low cost purchase to limit gas costs.
Let's talk about numbers
As in any self-respecting project, 1Inch also has its own prospect of returns, clearly, being fluctuating according to the market, we have a range of returns ranging from a minimum of 35% up to a maximum of 106% the range refers to the returns of the pairs indicated as in the table below.
Interesting, what do you think?
How to get started
Getting started, as I wrote at the beginning, is very simple: you need a wallet that supports the ethereum blockchain tokens and that's it.
As soon as the wallet is connected (I use metamask on an experimental level) we are already projected into the 1Inch ecosystem.
At this point all that remains is to proceed with the exchanges, very important thing is the button at the bottom before confirming the swap: we can give priority to the maximum profit in the exchange, or have some attention on saving by looking for the lowest transaction cost possible.
This is the token swap window
As you can see it is of an embarrassing simplicity: I absolutely don't have to worry about what the market is up to: the internal AMM of 1Inch will place the purchase of the token where the price is lower, it will also be performed with the procedure of sell: the order will be placed on the platform that gives me the highest price.
As you have seen, in addition to being extremely simple, the risk variable has also been brought to an all-time low!
What are you waiting for? I have already connected my wallet, see you over there!